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Market News Oil prices may end the three consecutive positives, but the bulls are gaining momentum awaiting this data
Oil prices may end the three consecutive positives, but the bulls are gaining momentum awaiting this data
On Wednesday (November 10) Brent crude oil and US crude oil futures prices fell after reaching a two-week high, but once hit a two-week high during the session. Previous API data showed that US crude oil inventories fell by 2.5 million barrels last week, and the EIA monthly report estimated that it helped alleviate market concerns about Biden's release of US strategic oil reserves. At the same time, the prospect of an imbalance between supply and demand in the oil market still supports oil prices. . Currently, investors are waiting for the EIA crude oil inventory change data to be announced at 23:30 GMT+8.
2021-11-10
12058
On Wednesday, oil prices fell after rising earlier, but the decline in US crude oil inventories may be declining and tighter supplies have limited the decline. API data show that as of the week of November 5, US crude oil inventories fell by 2.5 million barrels, lower than the 2.1 million barrels estimated by analysts.
UBS analyst Giovanni Staunovo said: "After a strong rebound in the past few days, oil prices are currently on the sidelines. Market participants will pay close attention to whether EIA inventory data will confirm the tight supply of crude oil and petroleum products, and the next step of the US government. Action." US Energy Information Administration (EIA) official crude oil inventory data is expected to be released on Wednesday at 23:30 GMT+8.
Russell Hardy, CEO of the trading giant Vitol Group, said that oil demand has returned to pre-epidemic levels, and demand in the first quarter of 2022 may exceed 2019 levels, which further supports the market Still tense point of view.
The strong demand from oil traders has added to the bullish sentiment of the oil production giant BP Plc, which said that crude oil demand has returned to about 100 million barrels per day, which is the highest level since before the epidemic. Hardy said: "The market supply and demand will be quite tight in the next 12 months, and oil prices are definitely likely to rise to $100/barrel."
Hardy warned that although jet fuel and US gasoline demand has not yet fully recovered to pre-epidemic levels, demand has returned. This forecast highlights that although the continued weakness in air travel has weakened the demand for aviation fuel, the demand for diesel and petrochemical products is pushing the price of crude oil back up.
Hardy said the oil market will continue to be tight, because OPEC oil-producing countries currently have 2 to 3 million barrels of idle capacity per day. By 2022, US oil production growth will still be less than 1 million barrels per day, highlighting market tensions. On the other hand, the Energy Information Administration (EIA) short-term outlook report predicts that gasoline prices will fall in the coming months. This also eased the market's worries. This is the key factor for US President Biden in deciding whether to use the strategic oil reserve in the face of the recent surge in oil prices. Hardy said: "This report does curb concerns that the United States will release oil from its strategic oil reserves. However, the release of strategic oil reserves may only have a short-term impact on the oil market."
The rebound in demand for fossil fuel hydrocarbons comes at a time when leaders of global politics, businesses and climate change activists gather in Glasgow to participate in the 26th United Nations Framework Convention on Climate Change (COP26) meeting, working hard to reduce greenhouse gas emissions and promote cleanliness. Agreement on fuel transition.
A statement announced at the summit showed that world leaders are trying to limit capital flows and slowly weakening governments’ support for the fossil fuel industry. Canada’s Federal Minister of Natural Resources (Jonathan Wilkinson) said: “This statement aims to ensure that fossil fuel exploration and production will not receive new investment. This statement was initiated by 21 countries and the number of countries that are expected to join will increase. Increase."
Julia Levin, senior project manager responsible for climate and energy at the Ottawa-based Environmental Defence Organization (Environmental Defence), said: “Overall, this will shift (global) US$20 billion from fossil fuel projects to clean energy, so huge influence."
However, some analysts said that in the long run, this policy may push up the cost of capital for oil and gas companies, especially if they seek to develop new projects. However, high commodity prices suppressed the direct impact, and high commodity prices allowed companies to repay debts and repair credit.
On Wednesday (November 10), as US crude oil rose for three consecutive days, it fell within a day after reaching a new seven-year high set previously. Currently, the market is waiting for the evening EIA inventory data to provide new momentum.
(U.S. crude oil futures daily chart)
GMT+8 At 20:20 on November 10th, the US crude oil futures price was quoted at US$83.36 per barrel.
UBS analyst Giovanni Staunovo said: "After a strong rebound in the past few days, oil prices are currently on the sidelines. Market participants will pay close attention to whether EIA inventory data will confirm the tight supply of crude oil and petroleum products, and the next step of the US government. Action." US Energy Information Administration (EIA) official crude oil inventory data is expected to be released on Wednesday at 23:30 GMT+8.
The world’s largest crude oil trader said that oil demand has returned to 2019 levels and is still rising
Russell Hardy, CEO of the trading giant Vitol Group, said that oil demand has returned to pre-epidemic levels, and demand in the first quarter of 2022 may exceed 2019 levels, which further supports the market Still tense point of view.
The strong demand from oil traders has added to the bullish sentiment of the oil production giant BP Plc, which said that crude oil demand has returned to about 100 million barrels per day, which is the highest level since before the epidemic. Hardy said: "The market supply and demand will be quite tight in the next 12 months, and oil prices are definitely likely to rise to $100/barrel."
Hardy warned that although jet fuel and US gasoline demand has not yet fully recovered to pre-epidemic levels, demand has returned. This forecast highlights that although the continued weakness in air travel has weakened the demand for aviation fuel, the demand for diesel and petrochemical products is pushing the price of crude oil back up.
Hardy said the oil market will continue to be tight, because OPEC oil-producing countries currently have 2 to 3 million barrels of idle capacity per day. By 2022, US oil production growth will still be less than 1 million barrels per day, highlighting market tensions. On the other hand, the Energy Information Administration (EIA) short-term outlook report predicts that gasoline prices will fall in the coming months. This also eased the market's worries. This is the key factor for US President Biden in deciding whether to use the strategic oil reserve in the face of the recent surge in oil prices. Hardy said: "This report does curb concerns that the United States will release oil from its strategic oil reserves. However, the release of strategic oil reserves may only have a short-term impact on the oil market."
Countries restrict fossil fuel financial support, and funds turn to clean energy
The rebound in demand for fossil fuel hydrocarbons comes at a time when leaders of global politics, businesses and climate change activists gather in Glasgow to participate in the 26th United Nations Framework Convention on Climate Change (COP26) meeting, working hard to reduce greenhouse gas emissions and promote cleanliness. Agreement on fuel transition.
A statement announced at the summit showed that world leaders are trying to limit capital flows and slowly weakening governments’ support for the fossil fuel industry. Canada’s Federal Minister of Natural Resources (Jonathan Wilkinson) said: “This statement aims to ensure that fossil fuel exploration and production will not receive new investment. This statement was initiated by 21 countries and the number of countries that are expected to join will increase. Increase."
Julia Levin, senior project manager responsible for climate and energy at the Ottawa-based Environmental Defence Organization (Environmental Defence), said: “Overall, this will shift (global) US$20 billion from fossil fuel projects to clean energy, so huge influence."
However, some analysts said that in the long run, this policy may push up the cost of capital for oil and gas companies, especially if they seek to develop new projects. However, high commodity prices suppressed the direct impact, and high commodity prices allowed companies to repay debts and repair credit.
On Wednesday (November 10), as US crude oil rose for three consecutive days, it fell within a day after reaching a new seven-year high set previously. Currently, the market is waiting for the evening EIA inventory data to provide new momentum.
(U.S. crude oil futures daily chart)
GMT+8 At 20:20 on November 10th, the US crude oil futures price was quoted at US$83.36 per barrel.
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